Colombia Crest Gold Corp.

Colombia Crest Gold Corp.

July 02, 2013 08:15 ET

Colombia Crest Gold Announces Discovery of Additional High-Grade Gold and Silver at the El Retiro Prospect, Within the Fredonia Project Area, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 2, 2013) - Colombia Crest Gold Corp. ("Colombia Crest"; the "Company") (TSX VENTURE:CLB)(PINKSHEETS:ECRTF)(FRANKFURT:EAT) is pleased to announce that recent follow-up float chip sampling in the El Retiro area, eastern Fredonia Project, returned up to 4.1 and 59.3 grams per tonne gold, with 35 and 253 grams per tonne silver. More-dispersed areas of up to 1.27 grams per tonne gold were also discovered in a contact between intrusive and metamorphic rocks which contained numerous sheeted quartz veinlets related to the mineralization, and could represent a larger-tonnage type gold target.

Since outcrop is limited, the recent follow-up sampling was of float chip samples in the area of the original high-grade prospect. A previous channel sample reported by Colombia Crest on December 20, 2010 was from a small prospect which returned 8.25 grams per tonne gold. El Retiro has consistently been returning interesting gold results, and now silver and tellurium are also anomalous. In the same area, on January 14, 2013, the Company reported stream-sediment gold results of 839 parts per billion (0.839 grams per tonne), which was confirmed by a follow-up sample with 656 parts per billion. Because this area has such strong numbers, additional field work will continue to delineate the high-grade structures in this area, as well as the potential for low-grade, bulk mineable gold from the quartz veinlet zone at the mineralized meta-sediment/intrusive contact.

"The El Retiro area continues to surprise and encourage our geologic team - these new results further support our original concept of having a high-grade gold-silver target in the eastern portion of the Fredonia Project," commented Hans Rasmussen, the Company's President and CEO. "I like the association of gold mineralization to an intrusive source where we could find a larger area, and thus larger tonnage, with moderate to high-grade gold. Additionally, we see that others have found gold in the same area as evidenced by collapsed historic tunnels/workings from small-scale miners. More follow-up ground work is necessary to assess the full potential of this area before a drill program is planned."

The geology of the gold-anomalous area consists mainly of micaceous and graphitic schist. A medium-grained dioritic stock is also near to the gold- bearing samples from quartz veinlets filling structures associated with the contact zone. There is evidence of more than one mineralized structure, and multi-stage quartz phases associated with the mineralized contact zone near the intrusive. Three types of gold-bearing mineralization have been observed:

  1. Gold bearing orogenic/mesothermal quartz veins (up to 8.5 g/t Au);
  2. Outcropping intrusive related mesothermal quartz veinlets (4.1 and 59.3 g/t Au from nearby float); and,
  3. A sheeted veinlets zone (up to 1.27 g/t Au). Potential for larger tonnages and lower gold grade overall.

Additional work is recommended: including shallow trenching around the strong float samples reported above, more detailed rock sampling to the extent outcrop is available and close-spaced soil sampling near the old workings and along the intrusive/schist contact.

Rock samples were sent to the Acme Labs Prep Laboratory in Medellin, Colombia. The chosen preparation method was code R200-250, which consists of crushing the entire sample to 80% passing 10 mesh (2 millimetres), split 250 grams and pulverize to 85% passing 200 mesh (75 microns). Once prepared, 200 gram pulps are shipped to the Acme Labs in Vancouver, Canada for analysis. Gold was assayed under package G601 which consists of 30 grams fire assay and atomic absorption with detection limits from 0.005 to 10 parts per million and with a gravimetric finish for over limits. A multi element package (1EX) of 41 elements including silver, base metals and pathfinder elements was also analyzed using ICP mass spectroscopy. The ICP multi-element analysis uses a four-acid total digestion prior to analysis.

Stream sediment samples were sent to the AcmeLabs Prep Laboratory in Medellin, Colombia. The chosen preparation method was direct in-situ sample sieving up to -200 ASTM mesh (75 microns) to avoid lab crushing. About 100 grams of sediment sample was sent to lab in Colombia for drying. After drying, sample was re-sieved using the same mesh (to avoid lumps) and the fine fraction was sent to AcmeLabs in Vancouver, Canada for analysis using 15 grams of pulp sample by the analytical package code 1F-MS, which corresponds to ICP mass spectroscopy (multi element package of 37 elements including gold, silver, base metals and pathfinder elements); gold detection limits are 0.2 parts per billion to 100 parts per million. The ICP multi-element analysis uses aqua regia digestion prior to analysis.

The technical information in this news release has been reviewed and approved by John E. Bolaños, a Qualified Person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.

EuroSwiss Capital Agreement

The Company is also pleased to announce that it has entered into an agreement with EuroSwiss Capital Partners ("EuroSwiss") of Switzerland to provide business development, media awareness and investor relations activities in Switzerland and other European countries.

"EuroSwiss has presented an incredible opportunity to get market exposure in areas where we have no presence - this will add value and more importantly, will make investors in Europe aware of the continuing progress we're making at Colombia Crest," commented Mr. Rasmussen.

The agreement with EuroSwiss is for an initial 12 month period subject to renewal at the mutual consent of both parties. Colombia Crest has the right to terminate the agreement upon 30 days' written notice. Under the agreement, the Company will pay EuroSwiss Capital a fee of 3,000 Euros per month for the initial term of the agreement. In addition, the Company will grant at a later date to EuroSwiss 200,000 incentive stock options ("Options") each exercisable for the purchase of a common share of the Company at a price of CAD$0.10 per share for a period of three years, with 50,000 options becoming exercisable every three months. The Options are subject to the terms of the Company's stock option plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange ("Exchange")

EuroSwiss is a Swiss-based global capital market consulting and investor awareness firm that ensures results for small and mid-sized public companies in their shareholder expansion efforts in Europe. Primarily targeting the German speaking market, EuroSwiss uses a multifaceted approach to attract retail and institutional investor interest to quality publicly traded companies. EuroSwiss offers a comprehensive range of unique services to effectively build and continually strengthen shareholder bases of emerging-growth companies. Included in the EuroSwiss service portfolio are: cohesive and targeted shareholder awareness campaigns; research coverage and distribution using proprietary formats and internal data bases; and major media access for significant events and client progress.

The agreement with EuroSwiss is subject to acceptance by the Exchange.

Private Placement Update

The Company also reports that the non-brokered private placement of units (each a "Unit") amended on June 24, 2013 to raise gross proceeds of $281,000 has been reduced to the original $146,000 as announced on April 22, 2013.

The pricing of $0.015 per Unit remains the same as announced on June 24, 2013 whereby each Unit will be comprised of one common share and one transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at the price of $0.05 for one year after Closing, $0.10 during the second year after Closing and $0.15 during the third year after Closing.

Proceeds from the financing will be used for the purposes set out in the Company's June 4, 2013 release. The Company has agreed to pay finders' fees in respect of a portion of the financing in accordance with the policies of the Exchange. The proposed private placement and finder's fees are subject to the acceptance of the Exchange. All shares issued pursuant to the offering, and any shares issued pursuant to the exercise of warrants will be subject to a four-month hold period from the Closing date.

About Colombia Crest Gold Corp.

Colombia Crest Gold Corp. is focused on systematically exploring, developing and monetizing promising new gold projects in Colombia. The Company is currently carrying on exploration programs at the Fredonia and Venecia projects where it has optioned over 15,000 hectares located approximately 40 km south of the city of Medellín, in Antioquia Province. The properties are positioned within the Middle Cauca Belt, the most prolific gold belt in Colombia with more than 500 years of gold mining history and several new gold discoveries.

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